Modeling health shocks

18581 5 100595 2 308153 document 100595 WP-23-002.pdf application/pdf 8637adefbcf08a952e9f0c2dca5dec3d MD5 1353707 2023-01-24 08:30:42 https://pure.iiasa.ac.at/id/eprint/18581/1/WP-23-002.pdf 18581 1 1 application/pdf text en public cc_by_nc_4

WP-23-002.pdf

published 100596 1 308158 document 100596 indexcodes.txt text/x-asm fe021a046c2a87f7dfed056e88ae32f0 MD5 19142 2023-01-24 08:41:08 https://pure.iiasa.ac.at/id/eprint/18581/2/indexcodes.txt 18581 2 2 text/x-asm other Generate index codes conversion from text to indexcodes en public

indexcodes.txt

lightbox.jpg

preview.jpg

medium.jpg

small.jpg

http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/100595 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/100595 http://eprints.org/relation/issmallThumbnailVersionOf https://pure.iiasa.ac.at/id/document/100595 archive 353 disk0/00/01/85/81 2023-01-24 08:33:06 2023-01-24 08:33:06 2023-01-24 08:33:06 monograph show 1 Freiberger M. 2329 Kuhn M. 2235 Wrzaczek S. 9380 Albert van Jaarsveld, Director General and Chief Executive Officer Modeling health shocks pub EF Most of the models on the life-cycle utilization of health care assume that individuals are able to foresee the development of their health perfectly. However, health shocks with significant impact (e.g. severe life-threatening conditions, the onset of chronic disease or accidents) should not be averaged into a mean value, as they have the potential to put the life-course onto a different trajectory. In this paper, we introduce a dynamic optimal control framework incorporating a stochastic health shock with individuals allocating their resources to consumption and different kinds of health care over their life-cycle. We distinguish between general health care and shock specific p revention, a cute and chronic care. This set-up enables us to analyse how the health risk shapes individual behaviour with respect to the different types of health care and how health shocks change the trajectories of consumption and savings. Newly developed transformation techniques allow us to investigate the optimal decisions made in anticipation of a potential health shock and the optimal reaction to all possible shock scenarios. We are able to obtain analytic expressions for the consumption and health care utilization profiles before and after the shock and identify the driving forces. Furthermore, we extend the value of life concept to other aspects of individual health. Finally, we illustrate our findings by calculating a numerical solution calibrated to an individual facing a potential cancer diagnosis in the US. 2023-01-24 published WP-23-002 3290 3124 3362 public working_paper Laxenburg, Austria FALSE no info:eu-repo/semantics/book